University of Rizal System

Binangonan , Rizal
Graduates Studies
Doctor in Business Administration

Name: JOUHARA G. SAN JUAN

Subject: Investment Management
Faculty: Dr. Virgilio V. Salentes

Risk and return are opposing concepts in the financial world, and the trade off
between them could be thought of as the “ability-to-sleep-at-night test.” For investors,
the basic definition of “risk” is the chance that an investment's actual return will be
different from what was expected.

Investment returns tend to be higher for riskier assets. For example, savings

accounts, certificates of deposit and Treasury bonds have lower rates of return because
they are safe investments, while long-term returns are higher for growth stocks and
other riskier assets.

In Conclusion to achieve ones goals before investing in stocks and bonds,

investors must understand what exactly they are investing into and know their tolerance
level for risk. Some investors are in the market for a fast, high-risk return while others
are more comfortable with a long-term steady investment approach.

Risk and Return

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 University of Rizal System
Binangonan , Rizal
Graduates Studies
Doctor in Business Administration

Name: JOUHARA G. SAN JUAN

Subject: Investment Management
Faculty: Dr. Virgilio V. Salentes

The term 'fixed income' in portfolio building generally refers to an investment

style that generates stable and predictable returns. These returns are generated from
low risk securities that pay predictable interest, and various methodologies can be
employed to generate steady returns. The most common fixed income securities include
Treasury bonds, corporate bonds, certificate of deposits and Preferred Stock.
Bond portfolio management strategies can help investors get the most of their
portfolio, by actively managing fixed income investments to ensure maximum returns.
These strategies include interest rate anticipation, sector rotation and security selection.
In conclusion choosing bonds over stock is preferred if the investor is looking for
steady income with regular interest payment.

Fixed –Income Portfolio Management

jouharagsanjuan Page 2
 University of Rizal System
Binangonan , Rizal
Graduates Studies
Doctor in Business Administration

Name: JOUHARA G. SAN JUAN

Subject: Investment Management
Faculty: Dr. Virgilio V. Salentes

The Efficient Market Hypothesis (EHM) is an investment theory whereby share

price reflect all information and consistent alpha generation is impossible. Basically it
says that all information about investment securities such as stocks is already factored
into prices of those securities and assuming this is true. It means that no analysis can
give an investor an edge over other investors, collectively known as “the market”.
There are three variants of the hypothesis: Weak, Semi Strong and Strong.
Weak: claims that prices on traded assets already reflect the past publicly available
information. The Semi-Strong form claims both prices reflect all publicly available
information and that prices instantly change to reflect new public information and finally
the strong form of EMH claims that prices instantly reflect even hidden “insider”
information in the market.
Therefore, for a market to be efficient, investors must perceive the market is
inefficient and possible to beat. Investors must also have enough funds to take
advantage of inefficiency until according to EMH it disappears again.

Efficient market Hypothesis

University of Rizal System

jouharagsanjuan Page 3
 Binangonan , Rizal
Graduates Studies
Doctor in Business Administration

Name: JOUHARA G. SAN JUAN

Subject: Investment Management
Faculty: Dr. Virgilio V. Salentes

An international portfolio is a grouping of investment assets that focus on

securities from foreign markets rather than domestic ones. An international portfolio is
designed to give the investor exposure to growth in emerging and develop markets and
provide for diversification.
Diversification can help investor manage risk and reduce the volatility of an asset
price movement.
Basically International Diversification is an attempt on the part of the investors to
reduce risk by investing in more than one nation. By diversifying across nations whose
economic cycles are not perfectly correlated, investor’s can typically reduce the
variability of their returns.

International Portfolio Theory and Diversification

jouharagsanjuan Page 4
 University of Rizal System
Binangonan , Rizal
Graduates Studies
Doctor in Business Administration

Name: JOUHARA G. SAN JUAN

Subject: Investment Management
Faculty: Dr. Virgilio V. Salentes

Analysis and interpretation of financial Statements is a way to determine the

significance and meaning of the financial statement data so that a forecast may be
made of the prospects for future earnings, ability to pay interest, debt maturities and
profitability
Financial Statement Analysis helps to know the business organization’s 1. Ability
to pay loans to creditors and dividends to stockholders. 2. It helps to measure the
overall financial strength of a business using different methods/tools for Financial
Statement Analysis i.e. Horizontal analysis, Vertical analysis, Common Size Statement,
Trend Percentages and Ratio Analysis.
Therefore financial analysis is important for its helps to evaluate and examine the
past and current financial data of a company’s Financial Performance and Position.

Analysis and Interpretation Financial Statement.

University of Rizal System

jouharagsanjuan Page 5
 Binangonan , Rizal
Graduates Studies
Doctor in Business Administration

Name: JOUHARA G. SAN JUAN

Subject: Investment Management
Faculty: Dr. Virgilio V. Salentes

Business ethics (also known as corporate ethics) is a form of applied ethics or professional
ethics, that examines ethical principles and moral or ethical problems that can arise in a business
environment.
Unethical Manifestation Effects on the Firm Propose Measure
Conduct
Misusing  covering for  Decline in productivity and profit.  Face Recognition
company someone who Biometrics
time shows up late
or altering a
time sheet
Employee  check  Financial Losses.  Installation of
theft tampering, not The theft of company property or Security Cameras
recording sales money cost the amount of the  Formulation of
in order to loss itself and can cause further Good Internal
skim, or financial issues. ... These extra Control
manipulating expenses can cost  Audit of Financial
expense employees money that might Reports
reimbursement have come in the form of pay
s. raises and bonuses.
Violating  These are  Surfing the Internet is a frequent  limit personal
company Cyber slackers. time-waster for employees, thus usage by blocking
internet A term used to decreasing productivity. certain sites or by
policies identify people encouraging
who surf the workers to spend
Web when they breaks, rather than
should be company time,
working. surfing the Internet.
 Reminding
employees of
company policy and
announcing that
Internet usage is
being monitored
also can help
reduce personal
Internet usage.

Business Ethics or Corporate Ethics

University of Rizal System

jouharagsanjuan Page 6
 Binangonan , Rizal
Graduates Studies
Doctor in Business Administration

Name: JOUHARA G. SAN JUAN

Subject: Investment Management
Faculty: Dr. Virgilio V. Salentes

Economic growth is measured by an increase in gross domestic product (GDP)

(Pinas), which is defined as the combined value of all goods and services produced
within a country in a year and the Gross national product (GNP) (Pinoy) which is a
broad measure of a nation's total economic activity. GNP is the value of all finished
goods and services produced in a country in one year by its nationals.
There are 4 main factors that influence economic growth within a country:
Land [natural resources] available.
Investment in Human Capital.
Investment in Physical Capital.
Entrepreneurship.
Economic growth creates higher tax revenues, and there is less need to
spend money on benefits such as unemployment benefit. Therefore economic growth
helps to reduce government borrowing. Economic growth also plays a role in reducing
debt to GDP ratios.

Macroeconomic and Industry Analysis

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